Hello all you lovely people, it’s Christy here again with another interesting real estate post for you. I’m sure you are all familiar with real estate listings, you see them all over town on buses, benches, telephone poles and everywhere online now as well. If you look closely at most of these listings, the first thing they will tell you is if the listing is being sold privately or with a listing company. Privately sold properties are not inherently different than ones sold publicly with a listings agent, but they are dealt with slightly different and the bargaining process can sometimes be very different. With a privately sold property, there is no commission to be payed out so the seller can look to out more money in their pocket, and as such the listing price will sometimes be lower. Let’s say you sell a house for $500,000 and pay an agent 3% commission, you will get a maximum of $485,000 after paying the agent. If you sell it privately however, you can sell for slightly less ($490,000) but keep more of the money.
For someone with a bit of experience in the real estate business and a decent amount of time on their hands, private listings can be extremely beneficial. Likewise, as a buyer if you have the time to look through private listings and meet with the current owners then you can save yourself a good chunk of change. If buying privately you must be more aware of homeowner traps as they are called however. Private listings are notorious for needing inspections, and the owner can easily refuse an inspection as there is no middle man to ensure things go smoothly. At any rate, private listings are a great way to learn more about real estate. See you guys next time, happy house hunting!